HONG KONG, Nov 6 (Reuters) - Zhuzhou Smelter (600961.SS)
and Huludao Zinc (000751.SZ), China's top and second zinc
makers, are reducing production due to low prices, weak
domestic demand and constricted supply of concentrate.
High-cost smelters started cutting production in the third
quarter. So far, more than 1.35 million tonnes, nearly a third
of China's 5 million tonnes of primary zinc production
capacity, are slowing production and that could cause metal
output to fall short from the expected 3.9-4.0 million tonnes
this year, smelter sources and analysts said on Thursday.
The cuts may widen in coming weeks as prices stay weak and
supply of concentrates from northern mines fall in the winter,
even though the scale remains uncertain.
Below is a list of zinc smelters' operations, in tonnes.
Producer Capacity Annualised cut Status
Zhuzhou 500,000 100,000 Cutting 20-30 pct at 400,000T;
New 100,000T on trial
Huludao 390,000 200,000 Halted 200,000;60,000 unstable
Dongling 225,000 0 Working on plan to cut output
Bayannur Zijin
200,000 0 Working on plan to cut output
Yuguang 200,000 100,000 Repairing 100,000 T, restart
(600531.SS) unclear
Hongda 100,000 0 (Sichuan) Normal
120,000 0 (Lanping) Normal
Nanfang 200,000 0 New 120,000 T on trial;
rest normal
Nonfemet 190,000 0 No plan to cut output
Baiyin 165,000 0 No plan to cut output
Chihong 160,000 0 No plan to cut output
(600497.SS)
Hanzhong Bayi
120,000 18,000 Cutting 10-20 pct
Luoping 80,000 24,000 Cutting 30 pct from Oct
002114.SZ
Western
Mining 60,000 16,000 Cutting 2008 output to 54,000
T
(601168.SS) from planned 70,000 T
Total 458,000
Sources: Company sources and smelter officials. (Reporting by
Polly Yam )
